Strong Yeezy drop leads Adidas to revise down expected losses
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Adidas now expects to report an operating loss of €450 million in 2023 after abandoning the collaboration with Kanye West.
PHOTO: AFP
BERLIN - Unexpectedly good sales of Yeezy inventory left over from its abandoned collaboration with rapper Kanye West helped Adidas to revise up its full-year forecast to an operating loss of €450 million (S$661 million) compared with a €700 million loss previously.
Although revenues fell 5 per cent to €5.3 billion in the second quarter, the gross margin rose 0.6 percentage points to 50.9 per cent, the company said on Monday.
Operating profit for the second quarter of 2023 was €176 million, down from €392 million the year before.
“Including the positive impact from the first Yeezy drop, the potential write-off of the remaining Yeezy inventory of now €400 million (previously €500 million) and one-off costs related to the strategic review of up to €200 million (unchanged), the company now expects to report an operating loss of €450 million in 2023,” Adidas said in a statement. REUTERS
